Hollywood Riviera & South Bay Real Estate Blog

A few days ago, the local papers were reporting some negative headlines with regard to the national real estate market. A potential buyer came to me with a counter offer and referenced this headline as a way to back up his low offer.   The very same day, as I made my way through the paper, there was a regional real estate article which highlighted the positive increase in median sales and sales volume comparing 2009 to this year.  I guess you can pick and choose the news article that can back up your approach.

The national real estate market is irrelevant in my view.   I prefer to use data from the MLS (multiple listing service) .  I  also reference the article from the  August 25, 2010  Daily Breeze page A 15 that notes that in Redondo Beach (this does not include all the Riviera),  the median home price is up 5.4% from July 2009 to July 2010.

To be more precise,  the MLS data shows that the Hollywood Riviera tracks average sold prices up 2% this year from 2009.  Also in the Hollywood Riviera: there has been a 38% increase in the number of homes sold this year over last year in the first half of the year.
With the large number of homes in escrow in the Riviera right now, we are on track for a dynamite year in homes sales in 2010!

Everyone has a different point of view huh?

Compare Your Home to this Recent Sale in the Hollywood Riviera – What would your home sell for if you live in the Hollywood Riviera?  You’ve got to compare it to recent sales in the area to come up with an approximate value.  Remember, this is not a science, but an art. 

Most recently sold we have – 248 Via Los Miradores – sold on July 30, 2010 for $1,155,000.  It’s original list price was $1,195,000 and it was reduced to $1,165,000 before it went into escrow and sold for $1,155,000.  It was on the market for a total of 76 Days and then closed in less than 30 days (that’s a fast escrow!) 

248 Via Los Miradores Sold for $1,155,000

248 Via Los Miradores was a pretty house with great curb appeal.  The interior was updated and well decorated.  The backyard was very small but well planned with a patio off the family room/kitchen area and a putting green made of the artificial turf for easy maintenance.  There were 2264 sq ft in 3 bedrooms and 2 bathrooms.  The kitchen was open to the living areas which seems to be a popular type of floor plan these days.  And this home had a nice view of the ocean, city and mountains from the main living areas plus the master bedrooom.  One of the downsides to this house was its location.  It was on a busy section of Via Los Miradores right where it comes up off of Calle Mayor – the street is tight there and parking is minimal.  During the school year that street gets busy with parents heading up to the elementary school to drop off their kiddies. 

Desirable Open Floor Plan

Sold – Over Asking??? – Yes, it’s back to multiple offers again here.  I opened up my “hot sheet” in the MLS today.  The Hot Sheet is a “status update since the last time I checked – which was this morning by the way’ of my selected areas of interest – which would include pretty much everything in the South Bay from El Segundo down through Manhattan Beach, Hermosa Beach, Redondo Beach, Torrance, and ends at Palos Verdes (including all of  PV – Rolling Hills Estates, Palos Verdes Estates, Rancho Palos Verdes, and Rolling Hills.) 

So, I hit my “Hot Sheet” button tonight to see if there are any new properties listed, what’s gone into escrow and what has just SOLD since the last time I hit the button.  This is something I do several times a day usually by the way.  Well, tonight I run the Hot Sheet and it’s just overwhelming to me that I see 4 of the SOLD properties that have all sold “over asking price,” which to me means there were multiple offers. 

Here are the 4 properties – and they are in all price categories by the way.  Click here to see them.

1) 331 11th Street in Hermosa Beach – list price was $899K and SOLD price was $900K.  11 days on the market – 2 bedroom, 2 bathroom 2001 townhouse in the “Sand Section” of Hermosa Beach with ocean views.

2) 707 S. Juanita in South Redondo Beach – list price was$749K and SOLd price was $759K.  – cute little 3 bedroom, 1 bathroom single family residence that over a matter of one month started at $799K and then they reduced the price to $749K and then ended up selling it over asking.  The magic of the “right price” even done a little bit late!

3) 2100 Via Acalones, Montemalaga section of Palos Verdes Estates – list price was $2,195,000 and SOLD price was a whopping $2,280,000 – even in this price range we see homes selling OVER asking! – 4 bedroom, 2 1/2 bath on a huge 28,000+ sized ocean view lot!

4) 4515 Deelane, West Torrance – list price was$639,000 SOLD for $645,000!  3 bedroom, 1 bathroom remodeled charmingly – perfect starter home that clearly many wanted to get started in!

Thursday, March 25, 2010
State Homebuyers Credit Extended

Gov. Arnold Schwarzenegger signed a bill aimed at selling California’s vacant homes and encouraging new construction by extending a $10,000 state tax credit for first-time homebuyers.

The governor signed a bill the state Legislature passed on a bipartisan vote earlier this week. It provides a state tax credit to first-time homebuyers who buy new or existing homes from May 1 until the end of 2010.

Homebuyers can claim 5 percent of the purchase price against their California taxes, or up to $10,000.
The state passed a similar tax break last year that capped the total credit available at $100 million on new homes bought through February.
The new bill makes another $100 million available for buyers of new homes and $100 million for those who buy existing homes. According to the Franchise Tax Board, the state allocated that credit to 10,569 applicants after receiving more than 12,000 applications.

It’s 2010 – Happy New Year!  “Twenty-Ten” is bound to be a good year.  To get things started the Hollywood Riviera neighborhood has 18 properties currently for sale.  11 of those are single family residences, 2 condos and 4 townhouses.  $525,000 gets you a 2 bedroom/2 bathroom condo near the bluffs and the Palos Verdes border.   Bring $675,000 to the table and enjoy a 3 bedroom, 2 1/2 bathroom ocean view townhouse close to Torrance Beach!  Just under a million and you can “play ball” with the bank on a short sale for a nice 3 bedroom/2 bathroom single family residence.  On the high end – $3.5 million dollars – you can own a 22+ thousand-square-feet-piece of the Torrance Beach bluff and the house that goes with it.  Nothing in the way of those ocean views!  

December 5th, 2009 – Here in the Hollywood Riviera there are only 15 houses for sale right now.   6 on the Torrance (90505) side of the line and 9 on the Redondo Beach P.O. Box (90277) side of the line.  The Hollywood Riviera neighborhood has 2 addresses – Torrance and Redondo Beach although it should be noted that the entire area lies in the City of Torrance.  The Redondo Beach side is merely a P.O. Box and has nothing to do with the city of Redondo Beach.  Schools are all South Torrance – Riviera Elementary, Richardson Middle School and South High School.

Of the 15 homes currently for sale – the prices range from $615,000 on 5026 Pacific Coast Highway, Torrance, CA 90505 to 517 Paseo de la Playa, Redondo Beach, CA 90277 which is located right on the bluff above Torrance Beach listed for $3,500,000.  As you can see there is quite a broad range of homes for sale.  In the mid-range, let’s say $949,000 – $1,099,000 there are 4 houses for sale that all have different qualities that make them each unique. 

1. 4817 Via El Sereno, Torrance, CA 90505 – 3 bedrooms, 2 bathrooms with a nice open modern floor plan.  The house has many upgrades including a very decked out garage.  The home has a nice city lights view out the back from a nice deck with a built-in firepit and seating.  Surround sound package and high-end lighting systems make this home ready to move into today!  $949,000

2.  452 Via los Miradores, Redondo Beach, CA 90277 – 3 bedrooms, 2 bathrooms (although one bath is off the kitchen and not near the bedroom area.)  Newer kitchen with granite counters and stainless appliances looks out back to the sunny south facing pool area.  Main bathroom is nicely remodeled as well with double sinks and pretty tile.  $949,000

3.  359 Paseo de Gracia, Redondo Beach, CA 90277 – One of the few short sales in the neighborhood (currently there are 2 active on the market.) This one has been on the market a while and it was way over-priced at $1,179,000 but they just reduced the price to $958,000 which makes this 3 bedroom, 2 bath with over 1800+ square feet seem much more attractive.

4. 209 Vista de Parque, Redondo Beach, CA 90277 – as the name implies, it’s located adjacent to El Retiro Park and this nicely appointed, recently remodeled throughout 3 bedroom, 2 bathroom home priced at $1,099,000 is quite nice.

If you are interested in seeing any of these or other Hollywood Riviera homes for sale, just give me a ring or an email.
Thanks, Kelly

There are currently 29 single family homes for sale here in the Hollywood Riviera.  They range from $530K (small fixer on PCH) to $3.5 Million (house on the bluff above the beach!)  That’s not a lot of inventory especially when you consider that only 6 months ago – May 09 – there were 49 homes for sale.  Our inventory has been selling.  Another plus is that the all the inventory is moving - including the high end inventory. 

Currently there are 15 homes here in the Riviera “pending” sale.  That means they are in escrow with a buyer in the process of purchasing the home.  That is typically a 30-60 day process depending what worked best for all parties.   These 15 homes range in list price between $589K – $2,248 Million.    The average price of the homes pending sale is $1,012,580.

Sold homes – if we go back and compare solds the 1st half of the year vs. the (not finished) 2nd half of the year you will see how the 2nd half of the year has gone much better for everyone.  Jan 1, 09 – June 30, 09 – there were 24 homes sold.   Their average price was $1,002,500. 
                                                                 Jan 1, 09 – Jun 30, 09 Solds 

Since then, July 1st, 09 – today (October 28th, 09) we’ve had 36 homes sell (that’s a 30% increase already and the 2nd half isn’t even over – remember those 15 pendings – most likely at this rate they will all sell prior to the end of the year which would make 51 homes sold vs that 24 (more than double the number of sales 1st half 09 vs. 2nd half 09.)  That’s good news for those who thought to sell the 2nd half of the year.  It also shows that the stimulus package the government is backing is working.  Not many of the people who get a $8K tax credit for purchasing a first home was seen here in this specific neighborhood, but people probably bought homes in lesser expensive areas and now those people who sold those homes can afford to move up to this neighborhood. 
July 1, 09 – Oct 28, 09 Solds

Multiple offers are back….ugh!  How do we agents prepare our buyers for the realities of multiple offers again?  Preparing them is the key here to a successful transaction.  Some tips for managing buyer’s expectations BEFORE they make the offer include:

1) Meeting with your buyers and advising them of the current market conditions.  If buyers understand upfront what to expect they are much less anxious about the process and tend to handle the rejection of not getting their offer accepted much better.
2) Advise your buyer to be prepared for the bidding process.  Have all your loan paperwork ready-to-go.  When presenting your offers include along w/ the package copies of pre-qualification letter, FICO scores (especially if they are high), & proof of funds – this makes you a much more believable candidate.  And as an agent, it makes you someone who shows they are “ready to go.”
3) Have the buyer know what top price it is that is “out of their range.”  That way, if the property sells for more than that price, they won’t be too dissappointed as they will know that it just was too expensive for them.  Be prepared as a buyer to pay your top price.  It is dissappointing to find out a house sold to someone else for a few more thousand than you offered.
4) Keep up a positive attitude when trying to find the right house.  It can be discouraging when you are in a price range where there is little inventory and those that do come on the market sell quickly, in multiple offers and not to you.  The right house will eventually present itself and you will be ready when it does.
5) Work with an agent who is determined to help you find a house…one who does not get discouraged.  Part of the agent’s job is to encourage you and stand behind you – no matter what the circumstances are and no matter how many times/offers it takes to get you the right house.

Donate Your E-Waste and Help Save Our Schools!  

On Saturday, June 6 from 10 a.m. to 3 p.m. the Torrance Council of PTAs will be hosting an E-Waste donation day. 1-800-GOT JUNK is donating 50% of the profits from this event to the TEF/TUSD Save Our Schools Fund to replenish proposed state budget cuts of $9.4 million for the 2008-09 school year.

Acceptable items include: Computer monitors, CRTs, TVs, projection TVs, CPU, towers, printers, fax machines, all-in-one centers, radios, stereos, speakers, phones, answer machines, kitchen appliances, microwave ovens, small refrigerators, and household appliances.

Drop off location is 2336 Plaza del Amo, Torrance, at the Educational Materials Building (EMB) parking lot.

For more information please visit the Torrance Council of PTAs website at http://www.torrancecouncilofptas.org/ or call Tammy Khan at 310-972-6152 or email her at tkhan@tusd.org.

Finally, NBC Anchor, Brian Williams has had enough of anchoring “the nightly depressing news” to the depressed public.  I’ve been thinking about it for a while now – as a matter of fact I wrote a blog about it back in August 2008 – Why Not Share Some Good News For Once.  Basically, viewers of the NBC Nightly News are sick of hearing all the bad news – constantly.  So NBC Nightly News decided to put it out there to all their viewers – “send us some good news stories.”  They have been inundated with so many stories they are going to find it hard to report all the good news.  I personally will start watching NBC Nightly News to see some of the “good news” out there in the world.  Maybe if we all start hearing some good news things will turn around again. 

Here’s some good news from C.A.R. – California Association of Realtors : The unprecedented price declines have dramatically improved affordability in the state. C.A.R.’s Housing Affordability Index for First-Time Buyers, which measures the share of all households that can afford the entry-level home, rose to 59 percent in the fourth quarter of 2008, meaning that nearly six in 10 households in California could afford the entry-level home (defined as 85 percent of the median home price) in the fourth quarter. Affordability has nearly doubled from a year earlier when the affordability index was at 33 percent and now stands at its highest level since the start of the decade. The index is based on an entry-level home price, a 10 percent downpayment, an ARM effective composite rate, and a 40 percent debt-qualifying ratio.